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X Faces Austrian Complaint Over Data Usage for AI Training

X Faces Austrian Complaint Over Data Usage for AI Training

An important complaint against social media network X, formerly known as Twitter, was submitted on Monday by the Austrian advocacy group NOYB (None of Your Business). The corporation, which is owned by Elon Musk, is accused of violating the General Data Protection Regulation (GDPR) of the European Union by improperly exploiting customers’ personal data to train its artificial intelligence (AI) systems without getting the required authorization.

The GDPR Grievance and Its Consequences

X Faces Austrian Complaint Over Data Usage for AI Training

Image Source: tribune.com.pk

Max Schrems, a well-known privacy campaigner, led the complaint that was filed with data protection authorities across nine EU nations. This action is a component of a larger plan to put further pressure on Ireland’s Data Protection Commission (DPC), which serves as the principal regulator for numerous significant American technology companies doing business in Europe because Ireland is home to their European headquarters. The main point of NOYB’s complaint is that X has been processing user data for AI training without providing users with an opportunity to opt out beforehand, which is a clear violation of GDPR regulations.

Ireland's Part in the Protracted Legal Battle

In order to rectify the situation, the Irish Data Protection Commission, which is leading the way in regulating these matters, has taken action. It has requested an injunction prohibiting X from utilizing user data for AI research until appropriate consent procedures are put in place. X consented to temporarily stop using personal data for AI training in response to the complaint. However, NOYB contends that rather than addressing the basic legality of the data processing itself, the DPC’s measures are more focused on mitigation.

The Position of Max Schrems and Legal Issues

Max Schrems, a prominent proponent of digital age privacy rights, voiced his worries regarding X’s operations. He said,

"We want to ensure that Twitter fully complies with EU law, which, at a bare minimum, requires to ask users for consent in this case."

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The case brought to light that X had not notified users of their right to object to data collecting until many weeks after the process had commenced, giving rise to further ethical and legal concerns. 

Analogous to Meta's AI Approach

This is not a unique instance. Similar problems arose for Facebook’s parent firm Meta in June when the Irish DPC asked for a postponement of the AI assistant’s European launch citing privacy concerns. Additionally, NOYB has filed complaints against Meta, highlighting the wider ramifications for IT businesses that use user data for AI training without the express consent of the user.

Final Thoughts: X's Future and EU Data Privacy

As the matter develops, X’s adherence to EU data protection regulations is still being investigated. The resolution of this case may establish a standard for how tech companies function in Europe, especially in relation to the use of private information for artificial intelligence research.

Elon Musk Polls X Users on $5 Billion Tesla Investment in xAI

Elon Musk Polls X Users on $5 Billion Tesla Investment in xAI

Elon Musk, the CEO of Tesla, has asked fans on the social media site X, formerly known as Twitter, if the electric vehicle manufacturer ought to contribute $5 billion to his artificial intelligence business, xAI. With roughly 69.5 percent of the 440,189 individuals voting on behalf of the investment and thirty percent against it, the early results show strong public support. Musk explained that the purpose of this poll is to determine public opinion; the board and shareholders of Tesla must still formally approve it.

The investment proposal's context

Elon Musk Polls X Users on $5 Billion Tesla Investment in xAI

Image Source: techzine.eu

Tesla just revealed that its profit margin was at its lowest level in five years as a result of pricing reductions and higher investment in artificial intelligence technologies. Musk stressed during Tesla’s most recent earnings conference that xAI might play a major role in constructing an entirely new Tesla data facility and expanding fully autonomous driving features. Musk also mentioned how Tesla’s software might be integrated with xAI’s chatbot, Grok.

xAI's History and Finances

Musk introduced xAI last year as a replacement for ChatGPT, and it has since advanced significantly. With a total of six billion dollars in series B capital secured in May, the business was valued at 24 billion dollars after taking on debt. Two well-known investors are Sequoia Capital and Andreessen Horowitz. Additionally, Musk has stated that investors in X, the social media network he paid $44 billion to acquire, will hold 25 percent of xAI.

Prior Surveys and Judgment Making

Musk is accustomed to making decisions based on X surveys. He polled users in 2021 to see if he should sell 10 percent of his Tesla ownership, and he quickly sold shares in response. Even if it reflects public interest, this survey is just the first one. Tesla’s board members and shareholders will ultimately decide whether to invest the $5 billion, and they will need to carefully weigh the advantages and disadvantages of doing so.

Issues and Strategic Perspectives

During the results call, Musk played off worries about using Tesla’s resources for his other projects. Remarkably, in June, CNBC revealed that, because of space constraints at Tesla’s data centre, Musk had given Nvidia the order to ship thousands of AI processors meant for Tesla to xAI and X.

Although public opinion seems to be in support of this large investment, Tesla’s major stakeholders will need to give it careful thought before making a final choice.

 
Why Has X (Twitter) Blocked Searches For 'Taylor Swift'?

Why Has X (Twitter) Blocked Searches For ‘Taylor Swift’?

In a recent move, Twitter has taken the step to temporarily block searches related to Taylor Swift on its platform. This action comes in response to an influx of explicit and digitally fabricated images of the renowned singer circulating on the site, as reported by The Wall Street Journal.

Why Has X (Twitter) Blocked Searches For 'Taylor Swift'?

Image Source: thepostmillennial.com

Users attempting to search for Taylor Swift on Twitter are greeted with a message stating, “Posts not loading right now” along with a suggestion to “Try again later.” This measure aims to curb the spread of the offensive content and protect users from encountering inappropriate material.

In an effort to combat the dissemination of fake images, loyal fans of Taylor Swift flooded the platform with authentic photos of the singer. The intention behind this move was to drown out the false content in search results and restore the platform’s integrity.

Additionally, Swift’s fanbase took proactive steps to flag accounts responsible for sharing the counterfeit images. Their vigilance contributed to the suspension or restriction of numerous accounts involved in the distribution of inappropriate content.

Twitter's Commitment to Safety

Joe Benarroch, head of business operations at Twitter, emphasized that the decision to block searches is a temporary measure enacted with a focus on user safety. Twitter reaffirmed its commitment to maintaining a safe environment for users by implementing a zero-tolerance policy towards such objectionable content.

Despite the suspension of several accounts, some of the offending images persist on the platform. Twitter continues to work diligently to address the issue and ensure that users can engage with the platform without encountering inappropriate or harmful content.

Twitter’s temporary block on searches related to Taylor Swift underscores the platform’s dedication to prioritizing user safety and combating the spread of false and explicit content. Through collective efforts from both the platform and Swift’s dedicated fanbase, steps are being taken to mitigate the impact of harmful material and uphold the integrity of the online community.

Elon Musk's Controversial Drug Habits Are a Growing Concern for Tesla's Board

Elon Musk’s Controversial Drug Habits Are a Growing Concern for Tesla’s Board

The revelation of Elon Musk’s history of drug use, highlighted in The Wall Street Journal, has yet again thrown Tesla’s board into a maelstrom of uncertainty. The board, primarily composed of Musk’s close allies, now grapples with the dilemma of addressing the financial and legal risks imposed on both shareholders and the company due to Musk’s reported recreational drug use, including the ongoing consumption of ketamine.

A Troubled Past for Tesla's Board

This isn’t the first time Tesla’s board has faced challenges tied to Musk’s actions. Shareholder dissatisfaction arose over Tesla’s succession planning, and allegations surfaced that Musk’s commitments to other companies diverted his focus, leading to a chaotic takeover of Twitter Inc. rebranded as X Corp. in 2022, causing a massive loss in market capitalization for Tesla.

Elon Musk's Controversial Drug Habits Are a Growing Concern for Tesla's Board

Image Source: news18.com

The board weathered storms from litigation linked to Musk’s failed attempt to take Tesla private in 2018, his controversial remarks about a cave explorer, and legal battles regarding hefty compensations and acquisitions, notably the $55 billion package for Musk and the $2.6 billion SolarCity acquisition.

Legal Ramifications and Financial Implications

The latest report alleging Musk’s use of LSD, cocaine, ecstasy, and psychedelic mushrooms, coupled with previous incidents like smoking marijuana on a podcast, poses legal threats to Tesla. Experts suggest that tying evidence of drug use to Musk’s role as an executive could fuel class-action lawsuits from disgruntled shareholders, further entangling the board in litigation.

Though Musk’s drug habits might potentially affect his other ventures, particularly SpaceX, Tesla remains the cornerstone of his wealth. His significant stake in Tesla constitutes a substantial portion of his net worth, raising concerns about the impact of his actions on the company’s stability and future.

Board Dynamics and Challenges Ahead

The board composition, largely comprising long-standing members close to Musk, faces scrutiny. Challenges emerged over re-electing members lacking industry expertise and concerns about objectivity. Despite changes like appointing independent directors, questions persist about the board’s effectiveness in addressing governance issues.

Directors like James Murdoch, Kathleen Wilson-Thompson, Joe Gebbia, and JB Straubel, who share personal relationships or history with Musk, add another layer of complexity to the board dynamics, raising questions about independence and decision-making.

The Road Ahead for Tesla

While Musk’s reported drug use may briefly impact Tesla’s shares, analysts believe that long-term investors will likely weather this storm, given Tesla’s historical performance despite Musk’s controversies. The stock’s meteoric rise despite previous incidents suggests a trend of investors choosing to navigate through Musk’s controversies for potential gains.

As Tesla navigates this latest challenge, the board faces mounting pressure to address governance concerns and ensure stability amid Musk’s ongoing personal controversies, which continue to intersect with Tesla’s reputation and future prospects.

Will X’s Addition of Audio and Video Calling Create Stickiness in the App?

Will X’s Addition of Audio and Video Calling Create Stickiness in the App?

Elon Musk’s recent announcement regarding the introduction of audio and video calling features on X, formerly known as Twitter, has sparked curiosity and speculation among users and tech enthusiasts. This move aligns with Musk’s ambitious plan to transform X into an “everything app” that encompasses a wide range of services, from online payments to news and even food delivery.

Will X’s Addition of Audio and Video Calling Create Stickiness in the App?
Image Source: robots.net

While the new feature has generated excitement, not all X users currently have access to it, and the company hasn’t provided a clear timeline for a widespread rollout. Additionally, there’s been speculation, based on code discovered by tech veteran Chris Messina, that these audio and video calls may be reserved for subscribers, indicating a potential premium feature.

The introduction of premium features is not surprising in the tech world, but it raises questions about how these services will be managed. Some early users have reported that they can screen calls by specifying criteria such as verified users, people they follow, and contacts in their address book. This suggests that X aims to provide a level of control and privacy for its users.

However, X’s recent silence on the matter, responding to inquiries with automated messages after Musk’s takeover, leaves many wondering about the reasoning behind this new feature. Elon Musk has been vocal about his desire to transform X into a platform akin to China’s WeChat, a super-app that facilitates everything from shopping to communication. Yet, his initial vision for X.com, dating back to 1999, was primarily a financial services app, encompassing banking, digital transactions, and more.

The introduction of audio and video calling may appear incongruent with X’s financial services aspirations, raising concerns about potential disruptions to the user experience. Getting a phone call on a social media platform primarily designed for consuming information is an unexpected twist, particularly if it’s from an unfamiliar verified X user.

Nonetheless, Musk’s strategy might be to emulate companies like Uber and Amazon, creating stickiness within the X app by offering an expanding array of services. Uber evolved from a ride-hailing service to providing food delivery, boat charters, and more. Amazon used products like Alexa to drive additional revenue to its core business.

The big question is whether this approach will succeed for X. Users might initially be drawn to X for its signature content like live Spaces and entertaining posts. Still, they could stay for the convenience of internet-enabled phone calls, long-form content, and high-yield savings accounts, especially if these features are limited to subscribers. This approach could potentially become a revenue driver for X.

Also Read: Alphabet Shares Fall After Cloud Unit Misses Estimates

However, there’s a significant caveat to this strategy. Musk’s success in executing his grand vision hinges on both technical challenges and the regulatory environment. Unlike China, the U.S. maintains a close watch on tech companies to prevent monopolistic practices and protect competition.

In conclusion, while the addition of audio and video calling to X might seem unexpected in light of its financial services focus, it could potentially serve as a strategy to create user “stickiness” within the app. The ultimate success of this move will depend on how well Musk can execute his broader plans while navigating regulatory scrutiny. X users will have to wait and see how this ambitious transformation unfolds.

Ex-Twitter Executives Win $1.1 Million Legal Fees From Musk’s X

Ex-Twitter Executives Win $1.1 Million Legal Fees From Musk’s X

A judge ordered that X Corporation, previously known as Twitter, must pay a total of 1.1 million dollars in legal costs accrued by a number of the social networking site’s former senior executives.

Ex-Twitter Executives Win $1.1 Million Legal Fees From Musk’s X
Image Source: www.hindustantimes.com

Parag Agrawal, the former chief executive officer of Twitter, and Vijaya Gadde, a former top lawyer, directed the group’s legal team in convincing Delaware Chancery Court Judge Kathaleen St. J. McCormick on Tuesday that Twitter had broken its obligation to pay the legal costs associated with their work for the firm.

The ex-executives said that by refusing to pay the amounts despite the fact they were connected to inquiries into the activities of the social networking site, Twitter violated its own rules. When Elon Musk, a billionaire, acquired the business for the price of $44 billion last year, they were fired.

Due to his inability to pay Twitter providers for services like rent and consulting costs, Musk has been the target of several lawsuits.

Company representatives didn’t respond to an email seeking comment on McCormick’s decision on Tuesday right away. She presided over the court case involving Musk’s bid to have his $54.20 per share deal to purchase the social media company dismissed. In October 2022, he gave up trying to have the buyout declared invalid.

According to court documents, the business has reimbursed roughly 600,000 dollars of its debt but kept $1,158,427 in fees for attorneys’ work defending its previous executives in a congressional investigation into the impact of social media on elections in the United States, which required Gadde to testify before the House Committee on Reform and Oversight.

One of the business’s attorneys, Michael Blanchard, said that X executives had sticker shock after receiving the cost from Gadde’s lawyers, which they deemed to be quite unreasonable.

Also Read: Zoom Adds Features Like Document Editing in Bid to Compete With Microsoft

The expenses, as stated by Blanchard, were for a single day of testimony, not multiple years’ worth of dispute. Officials from X believed the proposal to be an absolute exploitation of the business’s legal obligation to compensate employees for work done on its behalf.

McCormick stated Delaware courts inclined in favor of allowing CEOs’ requests for legal cost reimbursement when connected to their representation of firms after considering the arguments. She claimed that she didn’t see any justification for departing from the usual in this instance.